Ultimate Guide to Recurring Invoices - 5 Key Benefits

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Manual creation of invoices can be inefficient and leave room for error. In this blog, you'll see a quick and straightforward approach to invoice processing which will save you time and money. We'll go over some of the real benefits of recurring invoices. 

Imagine this: You finish your work and get to the fun part - invoicing and collecting payments, but there are issues: exporting data from Excel, creating duplicate invoices, signing and sending reports, customers not receiving it, sending invoices too early or too late, and the list goes on.  

So instead of doing what you're best at, you waste time on unnecessary tasks which are easy to automate.

The difference between standard invoices & recurring invoices

A standard invoice is handy when you have multiple services to offer to a large number of clients. However, when using online invoicing software, you can also save time with standard invoices in several ways. 

One of the most effective ways is to create an invoice template for the services you offer and then send that same template to different clients. Invoice template reduces the possibility of error and saves time. We're not talking about an invoice design template but the ability to create an invoice with items and pricing information to be used repeatedly. 

On the other hand, a recurring profile is much more helpful when you offer ongoing services. 

So now, let's get into the five key benefits that automated recurring invoices created by online invoicing software have:

Benefit 1: Cash Flow

The longer you wait to send an invoice, the longer it will take to receive payment. Therefore, recurring invoices are crucial for business owners who have ongoing customers.

• Customer Habits
  Establishing a recurring invoicing system and procedures will create a customer habit to pay your invoices on time.
• Payment Automation
  Payment habits of customers will, in return, create payment automation, which will help with cash flow. 
• Timing of payments
  Not being paid on time when you have bills of your own to pay, is the same as not having money, regardless of how much you have invoiced and pending payment. 
• Automation
  Making sure invoices go out when they should, without having to think about it, will also help ensure money goes into your bank account, without having to think about it and worry when it's not there.

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Benefit 2: Recurring invoices increase productivity. 

One of the most commonly used terms in the context of business development is productivity. This term does not mean that you only do your job efficiently, but that you reach the goal in the shortest possible time.

• Time is precious
  Eliminate double work by not repeating the same invoice for the same customer. Set it, forget it and save time. Time is money.
• Never hurried
  Hurrying to create invoices can lead to unnecessary errors, which will take energy to correct, taking away time from other priority items.
• Increases focus
  Recurring invoices give you the ability to focus once and let it run - so you can invest your focus into where it's most productive. 

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Benefit 3: Consistency makes repeat customers happier.

Recurring invoices are best for customers with consistent and repeated monthly transactions. For example, this is usually the case with:  

• Bookkeeping, 
• Landscaping, 
• Legal and business consulting services, 
• Program maintenance, 
• Rent collection,
• Performing a service,
• Subscriptions, etc.
  

However, suppose you opt for recurring invoices that get sent automatically. In that case, you create a customer habit, especially if you're blessed enough to work with repeat customers.
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Benefit 4: Recurring invoices will speed up the invoicing process

No matter what business you're in, if you have clients to whom you issue the same invoices monthly, a recurring invoice will speed up the invoicing process, whether rent collection, performing a service, or another job. 

In addition, you can provide periodic invoicing in services with a longer duration: 

• weekly, 
• monthly, 
• quarterly, 
• semi-annually, 
• annually. 
  

You can also specify the Frequency of sending and the number of invoices sent. So, for example, send this invoice two times per month, for six months. 

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Benefit 5: Accuracy and professionalism

Professionalism is accuracy, and making sure that your invoices are spot-on every month, says "we take our business seriously."

• This will eliminate the unnecessary back and forth with customers when it comes to the invoicing process. The last thing a customer wants when they receive an invoice is to make a call with questions.
• Customers expect consistency and fear surprises, even if those surprises are accidental. 

How does recurring invoice automation work in InvoiceQuick?

After you specify the billing period, the date of the first invoice, and how many times you want your recurring profile to send, the other dates get calculated. You can also set reminders for payments that get sent if the recurring invoices become past dues.

Creating recurring profiles is super easy on InvoiceQuick and puts your billing on auto-pilot. 

Here's how:

1. Navigate to the Recurring Profiles tab. 
2. Click Create a new profile. 
3. Pick a customer. 
4. Select what you are charging this customer for.
5. Select a Starting Date and Sending Frequency (weekly, monthly, quarterly, yearly).

1. After you specify the billing period, interval data, and the date of the first invoice or how many times you want your recurring profile to be sent, the other dates are calculated for you.

1. Pick for how long you want the invoices to send automatically.

1. After you pick the exact number of times you want your invoices to be sent out, or you check the "infinite" box - the system will make sure your invoices are sent every time on time! 

1. Turn the Status ON (Active Profile). 
2. Set payment reminders

1. If you have a forgetful client, InvoiceQuick offers you the option to set automatic reminders to be sent before the due date, on the due date, seven days before, or however, you choose to put them. Take advantage of the ready-made email template that the system has generated for you, set the sending date, and let the system do the awkward job for you.
   
   

If you have a monthly retainer and you want to bill other customers with the same invoice:

1. Click on Duplicate. It will open up the recurring profile
2. Change the customer.
3. Turn Status ON,
4. Save the profile.
5. And you're good to go! 
   
   

Regardless of which industry you're in, chances are you will have repeat customers who purchase from you monthly, quarterly, or annually. Some businesses may have customers who purchase multiple times every month. 

Recurring invoicing is a simple approach to tackling what can become a headache. Many different invoice software providers offer recurring invoice features, but not many make it easy and efficient. We mean that it must be easy for you, the business owner, and efficient for the customer to receive the invoice. 

Nobody is perfect, and we all make mistakes. The goal is to use tools that can eliminate unnecessary errors and issues - especially when it comes to one of the most important parts of your business - getting paid and on time, every time. 

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